AIA’s monthly Architecture Billings Index strengthened in August, coming in at 55.6, which is 1.0 point higher than July's ABI of 54.6. The ABI is a leading economic indicator of construction activity in the U.S. and reflects a nine- to 12-month lead time between architecture billings and construction spending nationally, regionally, and by project type. A score above 50 represents an increase in billings from the previous month, while a score below 50 represents a contraction.
The design contracts score moderated in August at 56.6, falling 1.4 points from July's score of 58.0. New project inquiries remained stable at 64.7, falling 0.3 points from July's score of 65.0. “The surge in design activity continued in August, signifying an expected upturn in construction activity in the fourth quarter and continuing into 2022,” said AIA chief economist, Kermit Baker, Hon. AIA, in a press release. “This expected expansion will magnify the already serious problems of price inflation and availability of many construction products and materials, as well as the emerging labor shortages in the industry.”
The month-to-month change in scores for regional billings—which, unlike the national score, are calculated as three-month moving averages—remained in positive territory in August, although three of the four regional billing scores lost ground. Billings in the Midwest fell 3.1 points to a score of 55.2, while billings in the West increased 1.2 points to a score of 57.2. Billings in the South fell 2.1 points to a score of 52.5, and billings in the Northeast decreased 2.4 points to a score of 51.7.
Billings scores also remained in positive territory, although three out of the four sectors had scores that decreased from their July values. The commercial/industrial sector fell 3.7 points to a score of 54.7; the institutional sector decreased 1.0 point to a score of 54.4. The multifamily residential score fell 0.4 point to a score of 54.3, and the mixed practice sector rose 1.6 points to a score of 56.0. Like the regional billings scores, sector billings scores are also calculated as three-month moving averages.
